GraniteShares launched SK Hynix ADR 2x leveraged and inverse ETFs on the 14th, triggering over $3 billion in cumulative trading volume within four days of listing. The products track SK Hynix American Depositary Receipts, which will become convertible with domestic Korean shares after the 29th. Market participants are monitoring whether the leveraged products' volatility in US markets — where no price limits exist — will amplify swings in Korea's semiconductor-heavy stock index once the ADR-to-domestic conversion mechanism activates.
GraniteShares SK Hynix Leveraged ETFs Record $330 Million First-Day Volume
US asset manager GraniteShares listed SK Hynix ADR 2x leveraged and 2x inverse ETFs simultaneously on the 14th. The leveraged product trades under ticker SKUU and delivers twice the daily return of the underlying SK Hynix ADR. The inverse product SKDD provides twice the inverse daily return when the ADR declines. GraniteShares specializes in leveraged and inverse products, operating the NVIDIA 2x leveraged ETF (NVDL) since 2023 and recently launching SpaceX leveraged and inverse products (SPAL, SNK).
The two SK Hynix ETFs traded 16.88 million shares worth $330 million on their first day. Daily trading increased steadily, reaching a cumulative 109 million shares over four days. Total trading value for both products exceeded $2.2 billion through the 17th.
Will Rhind, GraniteShares CEO, stated on the 17th: "Now anyone with a US brokerage account can trade SK Hynix during US market hours in dollars. This should eliminate the valuation discount that has historically existed versus US competitors like Micron and attract dollar liquidity."
Four Asset Managers Launch Competing SK Hynix ADR Products Within Two Days
ProShares Advisors launched its SK Hynix ADR 2x leveraged ETF (ticker SKHU) on the 14th. SKHU recorded 12 million shares and $270 million in trading volume over its first four days. Leverageshares simultaneously listed SK Hynix ADR leveraged and inverse ETFs (tickers SKHX and SKHZ), which traded 35 million shares and $520 million over the same period.
Directional launched its SK Hynix ADR 2x leveraged product (ticker SKHL) on the 15th. SKHL traded 3.5 million shares and $36 million in its first three days.
Combining all products, SK Hynix ADR-based leveraged and inverse ETFs traded 150 million shares and $3 billion in US markets during the week following initial listings.
ADR Conversion Activates After the 29th With No US Price Limits
The Korea Securities Depository announced that mutual conversion between SK Hynix ADRs listed in the US and domestic Korean shares will become available after the 29th. A depository official explained: "The DR depository will announce the conversion schedule following instructions from Citibank. The conversion application date will be after the 29th, which is the scheduled domestic listing date for the original shares."
Korean markets impose ±30% daily price limits on individual stocks and ±60% limits on leveraged products. US markets have no such restrictions. Han Su-jin, analyst at Samsung Securities, stated: "US ETF managers are consecutively launching single-stock leveraged and inverse ETFs immediately after the SK Hynix ADR listing. The ADR listing is becoming a core platform for AI memory investment in US capital markets. Since the US has no price limits, volatility could expand more significantly than in Korea."
FAQ
What SK Hynix ADR leveraged products launched on the 14th?
GraniteShares launched SK Hynix ADR 2x leveraged (ticker SKUU) and 2x inverse (ticker SKDD) ETFs on the 14th. ProShares Advisors and Leverageshares also launched competing products the same day. These products traded over $3 billion cumulatively in their first four days.
When does SK Hynix ADR conversion with Korean shares become available?
The Korea Securities Depository announced that mutual conversion between SK Hynix ADRs and domestic Korean shares will become available after the 29th. The exact conversion application date will be announced by the depository following Citibank's instructions.
